As we have been hearing, Denver is a hot market. As it turns out pretty much most cities across the US are in the same situation. But what is happening in downtown Denver? That’s what we report on, and what our readers and clients count on. We report the condominium real estate numbers for 6 zip codes in downtown Denver. The real estate reports you read and hear about monthly in general includes all 11 Denver Metro counties (132 zip codes), including downtown. It’s important to us that we break that report down further, to analyze the downtown area on its own.
If you read one of our most recent articles or saw us on your local news channel, you heard that we suspected downtown would turn around quickly and that this past year was simply a pause. We anticipated an inventory crunch by the end of summer. However, it seemed like it happened over night when the Governor announced his hope for a “close to normal Denver” by the end of summer in March. That one message seemed to be our turning point.
Our supply of inventory at the end of March was down to 1.8 months. It peaked in October 2020 at 6 months. As a reminder, anything above 6 months is believed to lean towards a buyer’s market, while anything below suggests the timing is good for sellers. The last time inventory was this low downtown was December of 2017 and January of 2108.
There were 153 new listings in downtown Denver in March, the same as March 2020 (which happened to be up 58% from 2019). There are usually around 100 new listings downtown in March each year. Some analysts are saying this is because many are selling and leaving Denver. That may be true for some, but these next numbers might surprise you.
Active listings dropped overall to 168, down from 253 in 2020. Generally, you can expect to see that number at about 200 in March. The last time it was this low was in 2016 at 165.
Here’s how it all comes together and tells the real story of what’s happening downtown. It’s not quite the empty, quiet ghost town of a city many believe. Those who have wanted to move downtown or make the move to Denver all of these years have taken advantage of it. We continue to help clients relocate from Illinoi, Florida, California and New York. This was also expected as Denver has seen this happen after other downturns in the past. Pending sales in March rose to 165, we have not seen that number in the past 12 years of data we were able to access. In 2020 we had 62 under contract, 2019 it was 55, 2018 it was 83, in 2017 we had 86 pending sales in March.
Pending sales is a great number, but not a done deal, right? Here’s another record breaker to help tell the story of downtown. In March there were 173 closed sales! Again, going back 12 years in our research, there hasn’t been another March close to this. Closed sales in downtown Denver have ranged from 41-92 the past 12 years in the month of March. The average price per foot has actually increased faster than we thought as well, to $505 a foot.
So, if you haven’t been downtown in a while and miss that great city vibe you remember, come on down! It’s making its way back even quicker than we all thought. If you’ve been waiting to make your move downtown, this may be the perfect time. We’d love to keep an eye on the market for you or even show you what’s available today so you can see what’s going on for yourself.